Meta sinks to Wall Street: -25% and capitalization at its lowest since 2016

Sink Meta on Wall Street. Mark Zuckerberg’s holding comes to lose 25% at the opening of the Nasdaq with the stock slipping to the low of October 2015: $ 101 per share. The social network giant pays the bills published yesterday in the quarterly, where it recorded bad debts in profits and turnover. Net profits have more than halved (-52%) to 4.4 billion. Those operating fell by 46% to 5.66 billion. Turnover grew to 27.72 billion compared to the 27.38 billion forecast, but nevertheless recorded the second consecutive decline. A -4% that is expected to continue in the last quarter of 2022.

Numbers that alarm investors. But the division that creates the Metaverse, announced exactly one year ago by Mark Zuckerberg, also weighs on the company’s accounts. Reality Lab, the name of the business, reported a loss of 9.4 billion in nine months. Data that cast a shadow over the future of the virtual reality project launched with emphasis by Zuckerberg but received so far with much less emphasis by the public. Approximately 200,000 would currently be users who have accessed the new Menlo Park technology. Meta had initially set a goal of reaching 500,000 monthly active users for Horizon Worlds by the end of 2022. But internal documents published earlier this month by the Wall Street Journal reported that the company revised the numbers down to 280,000.

After the quarterly accounts presented yesterday, Meta lost 20% in the post market. But, projects being launched aside, to cast shadows on Meta’s near future there would also be the actions of Apple, which on its devices has severely limited access to user data for the company’s apps, and the competition of TikTok, much faster to scale the new generations. And consequently the positions on the advertising market. There are no precise market assessments on TikTok.

But a Bloomber assessment confirmed by rumors published by the South China Morning Post, could be around $ 300 billion. Meta yesterday closed its day on the stock exchange with a capitalization of 350 billion. But with the collapses of yesterday and today, according to Reuters, it has already burned 82 billion of its own value.